Blinking Lowell Financial and Defaults on my CRF!!!

compulsivespender79

I do hope someone can advise me on this one. I've just had a look at my CRF, and to my horror, Lowell have recorded a default against me every month since January last year!! The only payment I have missed since their first contact with me in March 2007 was last month's. I have paid the exact sum they asked for, on time, each month for 11 months, so surely that should show as 11 'OK's? The account is now in dispute, which is why I didn't pay last month. I have NEVER received a default notice from them. Surely this can't be right, can it?:mad:
Also, as a side issue, it has me registered at 2 addresses - the second one is a variation that British Gas have always used, and cannot get into their heads that it is incorrect - how can I get that removed from my CRF?
HUGE thanks in advance,

CSx

chevalier

I am not sure so this in part is a bump, but because you are not paying (I am assuming) the minimum contractual amount on the debt, you are in fact in default. So maybe that is why you are being defaulted each month.

On the other hand it may be somenone's mess up
chev

compulsivespender79

chevalier wrote: »

I am not sure so this in part is a bump, but because you are not paying (I am assuming) the minimum contractual amount on the debt, you are in fact in default. So maybe that is why you are being defaulted each month.

On the other hand it may be somenone's mess up
chev

Thanks chev. I'd understand having one default for last month (but aren't they supposed to notify you in writing anyway), but this is a debt that was bought by them, so by contractual minimum payments do you mean those on the original (non-existent) credit agreement?
I do hope someone can help!

fermi

compulsivespender79 wrote: »

I've just had a look at my CRF, and to my horror, Lowell have recorded a default against me every month since January last year!! The only payment I have missed since their first contact with me in March 2007 was last month's. I have paid the exact sum they asked for, on time, each month for 11 months, so surely that should show as 11 'OK's?

That will be updating the payment history, not registering a new default each month. If you check, the original date of the default should not have changed.

They can update the default every month to show that payments have been made, but the account will still be in default so you won't get an OK every month.

Who entered the original default on the account? The original creditor or Lowells?

How long was that after you first failed to make payments to the original creditor?

Whose name is on the default now?

compulsivespender79

fermi wrote: »

That will be updating the payment history, not registering a new default each month. If you check, the original date of the default should not have changed.

They can update the default every month to show that payments have been made, but the account will still be in default so you won't get an OK every month.

Who entered the original default on the account? The original creditor or Lowells?

How long was that after you first failed to make payments to the original creditor?

Whose name is on the default now?

The date on the first default is January 2007, the date on the latest default is April 2008, and they follow through like that month by month. The first default was registered by Lowell. There is no reference to the original creditor on my file. I can't remember exactly when I first fell behind with the OC, but it was sometime in 2004. Probably about 12 months after the CC was opened.
I'm probably just not understanding the way this works!

fermi

When you say that you fell behind in 2004, do you mean that you didn't keep up the minimum payments?

If you had technically defaulted on the account back then, then it could well be unfair for Lowells to record a default dated January 2007.

The Information Commissioner has issued some general guidance that it is normally unfair for a creditor (or the company a debt is sold on to to) to enter a default on your file dated much more than 6 months after you failed to keep to the contractual payments with the original creditor.

They have also commented on how it is fair for a creditor to treat records of a default when a debt is sold.

From: Technical Guidance Note - Filing defaults with credit reference agencies

Time framework

Although there will be some flexibility in the definition of a breakdown, we believe there should be general rules for the minimum period of arrears which should exist before a default can be filed. Equally there should be a maximum period after which, if anything is to be recorded with a credit reference agency, a default must be filed. The following are in line with the practices currently adopted by most lenders.

• Accounts should not be routinely filed as being in default where full payments or those due under a rescheduled agreement are fewer than three consecutive months in arrears.
• Accounts should normally be filed as being in default where those payments due have not been received for six months.

This time framework only relates to filing defaults. It does not affect the lenders’ ability to continue to report accurately on the extent of arrears using monthly status codes. We recognise that may not always be appropriate for products which advance credit over either a very short or very long-term.

The ‘sale’ or assignment of debts on defaulted accounts

52 When the rights to a debt are sold to a third party, the lender has to make sure the records with the credit reference agency are accurate, up to date and adequate. If they want information about the debts to continue on the credit reference file they will need to come to an agreement with the purchaser about who is to be responsible for this.

53 If the purchaser agrees to take control of the record, the customer should be informed that the debt has been sold or assigned and to whom. The credit reference agency file should be changed to show the name of the purchaser and that the rights to the debt have been sold or assigned.

The purchaser should then make sure the record is kept up to date including changes to the amount still owed. The purchase should not affect how long the record is kept. It should be removed six years after the default.

compulsivespender79

fermi wrote: »

When you say that you fell behind in 2004, do you mean that you didn't keep up the minimum payments?

If you had technically defaulted on the account back then, then it could well be unfair for Lowells to record a default dated January 2007.

The Information Commissioner has issued some general guidance that it is normally unfair for a creditor (or the company a debt is sold on to to) to enter a default on your file dated much more than 6 months after you failed to keep to the contractual payments with the original creditor.

They have also commented on how it is fair for a creditor to treat records of a default when a debt is sold.

From: Technical Guidance Note - Filing defaults with credit reference agencies

Hi Fermi, yes, technically I defaulted in 2004. You know how it goes, I defaulted, never heard from the OC again, and then a letter from Lowell turns up on my doorstep three years later!
Who can I contact regarding this? I don't necessarily want to pursue a complaint (yet), I just want to know if what's happened is correct.

fermi

Should you want to make a formal complaint, then the procedures to do this are explained on page 19 onwards of this factsheet from the Information Commissioner:

Link: credit explained.

If you want to check whether what Lowells have done is fair, then it might be useful to ask the ICO. They are the people who would ultimately rule on any complaint if it went that far.

https://www.ico.gov.uk/Global/contact_us.aspx

The free debt advice organisations in my signature might be able to advise as well.